Banc of California Strengthens Lender Finance Division with Strategic Hires

Banc of California, a leading regional bank, has made a strategic move to bolster its lender finance division by bringing on industry veteran Chris Hague to lead the team. This decision comes on the heels of the bank's acquisition of PacWest, which has enabled Banc of California to capitalize on new opportunities in the market.

Unlocking Growth Potential in the Lender Finance Sector

Integrating Expertise and Expanding Reach

Banc of California's decision to hire Chris Hague, previously with PacWest, as the new executive vice president and head of specialty finance, is a clear indication of the bank's commitment to growing its lender finance portfolio. Hague's deep expertise and industry knowledge will be instrumental in executing the bank's strategic goals in this segment.The integration of the PacWest team has been a seamless process, allowing Banc of California to leverage the combined talent and resources to better serve its clients. This move not only strengthens the bank's internal capabilities but also positions it as a go-to business partner for non-bank lenders seeking leverage and solutions to expand their reach.

Capitalizing on Market Opportunities

The recent bank closures have created a unique opportunity for Banc of California to strategically repurchase the $350 million in loans that PacWest had previously sold. This acquisition has significantly bolstered the bank's lending portfolio, which now stands at around $800 million.Jared Wolff, the Chief Executive and President of Banc of California, emphasized the significance of this move, stating, "It's created an opportunity for us to become the go-to business bank for clients in the markets that we serve." This strategic positioning allows the bank to cater to the evolving needs of its target market, positioning it for substantial growth in the lender finance sector.

Focusing on Agility and Relationship-Building

Banc of California's lender finance group primarily works with non-bank lenders, providing them with the necessary leverage and solutions to increase their reach and impact. By focusing on small and medium-sized businesses, the bank can be more nimble and solution-oriented, fostering stronger relationships with its customers.Wolff highlighted the bank's ability to be "more nimble and solution oriented" in this segment, which allows them to develop deeper relationships with their clients. This customer-centric approach is a key differentiator for Banc of California, as it enables the bank to tailor its services to the unique needs of each non-bank lender.

Projecting Significant Growth Potential

While Wolff acknowledged the difficulty in precisely quantifying the growth potential of the lender finance group, he expressed optimism about the division's future prospects. He stated, "With any new business, there's the opportunity to grow it faster than legacy businesses, because you're taking market share in building teams… It would be reasonable to expect that that business could grow double digits without stretching too much."This projection underscores the bank's confidence in its ability to capitalize on the opportunities presented in the lender finance sector. By leveraging its enhanced capabilities, strategic hires, and market positioning, Banc of California is poised to drive substantial growth in this segment, solidifying its status as a leading provider of specialized financial solutions.